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Apple's Magic Wears Thin as Its Earnings Disappoint

Apple shares fell sharply in European trading and dragged down Nasdaq-100 futures after the technology giant's quarterly results disappointed investors. Martin Essex and Ben Rooney assess whether this is a significant turning point for the company.

By

Ian Sherr

Updated Jan. 23, 2013 7:58 p.m. ET

Apple Inc. recorded a flat profit despite selling 18 million more iPhones and iPads, as it spent heavily to roll out new products to fend off intensifying competition.

Spooked investors erased nearly $47 billion from the company's stock-market value in after-hours trading, about as much as the combined worth of Dell Inc., Nokia Corp. and...